Keynes, the Long Run and the Present Crisis

Abstract

Keynes was always alert to the fact that capitalism, though in his mind the most efficient form of economic organization, was flawed in many respects and often offered its participants no incentive to rearrange matters to bring about a better outcome. In this paper the authors briefly review some of his schemes to illustrate the general shape of his thinking on the flaws of capitalism and their correctives, and then expand on one of his concerns- that over time the marginal efficiency of capital is likely to fall-and show its relevance to the present crisis. They explore his solution, the social control of investment, discuss problems of implementation, and conclude with some general remarks on the future of capitalism.